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I sent an email to my Payroll department, informing them of my payday loan issues, that I am revoking the wage assignments, and they told me that it's too late once I default on the loans. From what I have read, it is voluntary, and can be revokded at anytime...they said they will have to honor the ge assignment if it comes to them. I cannot find any laws anywhere that can help me clarify this...anyone have any suggestions where I can prove this, and send to my payroll department?
Thank you!

The voluntary transfer in advance of a debtor's pay, generally in connection with a particular debt or judg- ment.

A debtor may negotiate with a creditor a wage assignment plan in which a portion of the debtor's paycheck is transferred to the creditor by the employer. This voluntary agreement is in contrast to garnishment, in which a creditor obtains an order from the court to collect part of a debtor's wages from the employer. Both wage assignments and garnishment are governed by statutes in most states.

A wage assignment is similar to an assignment for benefit of creditors, in which the debtor assigns personal property to a trustee. Typically, the trustee sells the property and applies the proceeds to the debt. Any amount in excess of the debt is returned to the debtor.

Since the 1980s wage assignments have become an important method of making child support payments in the United States. In 1984 the federal government required all states to implement child support guidelines for welfare recipients. As time passed, those guidelines were implemented across the board in all cases involving child support. While a wage assignment has typically been viewed as a voluntary act by the assignee, courts now issue wage assignment orders directing employers to withhold child support payments and send the funds to a designated recipient such as a custodial parent, the court, or a state agency.

Although the paying parent may be a responsible individual who would never miss a payment, and the recipient parent may honestly report all payments received, the wage assignment eliminates potential conflict by using a neutral third party to implement the paying and reporting of payments. Employers generally do not impute bad character to an employee paying child support through a wage assignment, and the courts routinely issue orders without finding fault. Wage assignment orders are appropriate for salaried employees but do not work effectively for self-employed individuals or people in cash businesses.

A wage assignment may also be used when an employee obtains a loan from his employer and wants to repay the loan by having the employer withhold money from future paychecks. An employer who lends an employee a sum of money cannot take it out of the employee's next paycheck without a proper, written, notarized assignment from the employee. State statutes require that legal formalities be followed, or the withholding of money can be considered an unlawful assignment of wages.

Sub: #1 posted on Mon, 08/25/2008 - 10:45

danilewis82 danilewis82

(Posts: 296 | Credits: )

Thanks...although I'm not really sure what this means? My payroll department said that once I defaulted on the loan, I cannot revoke the wage assignment. They will proceed with the request from CTC, or any company that send the paperwork in...this is the opposite of what is being discussed on the boards. Are the laws different in each state?

Sub: #2 posted on Mon, 08/25/2008 - 11:03

haven228 haven228

(Posts: 8 | Credits: )

Legal Status: Prohibited

Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, ???? 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. ???? 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser Administrator of Non-Depository Institutions

Sub: #3 posted on Mon, 08/25/2008 - 11:11

danilewis82 danilewis82

(Posts: 296 | Credits: )

it clearly states in black and white that payday loans are prohibited in your state, i would send a copy of this to your hr dept, some people don't know how these things work, and in that case should not even be in that field(i hate that) in any case, call the number listed above and tell them of your situation.

Sub: #4 posted on Mon, 08/25/2008 - 11:13

danilewis82 danilewis82

(Posts: 296 | Credits: )

Payday loans are legal in long as the company is licensed in their(the companies) homestate, they are legal in PA.

That above just prohibits check cashers etc...see the citation

Sub: #5 posted on Mon, 08/25/2008 - 11:24


befor any companies try to wage assignments, try to do payment plans with them! Good luck! IN PA you will have to pay them back (the payday loans)

Sub: #6 posted on Mon, 08/25/2008 - 11:26


Wage assigments are voluntary and can be revoked at ANY time. It makes no difference if they are legal or not!

Sub: #7 posted on Mon, 08/25/2008 - 11:28

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17345 | Credits: )

payday loans are LEGAL in PA if that company doesnt have an entity in PA.

they can only revoke wages by court order in PA

Sub: #8 posted on Tue, 08/26/2008 - 05:32


Sub: #9 posted on Tue, 08/26/2008 - 05:55

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17345 | Credits: )

That is Washington law posted above . . . . Not PA law. It would not apply to this situation at all.

Sub: #10 posted on Tue, 08/26/2008 - 06:53

goudah2424 goudah2424

(Posts: 7936 | Credits: )

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